Member of Parliament for Okaikwei Central, Patrick Yaw Boamah, has warned that Ghana’s economy stands at risk following the Israel-Iran war.
He notes that crude oil prices have already gone up by 7% in recent weeks, and Ghana, being a net importer of fuel, is at risk.
“This could lead to higher pump prices, inflation, and further slow down economic growth, especially when the country is still struggling with fiscal deficits and rising public debt,” he told journalists in Parliament on Monday, June 16.
Mr. Boamah also touched on the humanitarian and diplomatic challenges posed by the conflict.
“I noticed a tweet from the Foreign Minister directing the closure of our mission in Tehran due to safety concerns. The area around the embassy has experienced damage, including water cuts and disrupted communications.
As of now, there are five diplomats and one official on the ground, and the government will need to ensure their safe evacuation — a costly but necessary move,” he said..
President Mahama has already urged the Ministers of Energy and Finance to consider steps to safeguard the progress that has been made in lowering the prices of petroleum products, since rising conflicts between Israel and Iran have begun to drive up crude oil prices.
Speaking during his Thank You Tour of the Savannah Region on June 14, President Mahama hailed Ghana’s recent economic stabilization efforts but also cautioned about the possible impacts of global events.
“Despite the work we have done in stabilising the economy, Ghana is not immune from the shocks of global events,” President Mahama said.
He explained that the recent missiles strike between Israel and Iran has led to a sharp increase in crude oil prices, a situation likely to erode the progress made in reducing the cost of petroleum products in Ghana.
Recent events in the Middle East, which involve an exchange of missiles between Israel and Iran, have started to escalate crude oil prices dramatically.
“I’ve asked our Minister of Finance and Minister of Energy to keep a close eye on the development and model the possible impacts on our petroleum prices and prepare measures to protect the recent gains that we have made,” he added.
Source: 3news
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